SHANGHAI: Chinese stocks rose on Monday, helped by fresh signs of government-orchestrated support measures, while Hong Kong shares were muted amid persistent fears of an escalation in the Middle East war.
China’s blue-chip CSI 300 Index closed 0.6% higher. The Shanghai Composite Index edged up 0.1%, standing above the psychologically key 3,000-point mark.
Chinese tech stocks were strong, but banking shares fell on shrinking margins, while property shares declined as China Evergrande Group moved toward a possible liquidation.
Hong Kong’s Hang Seng Index ended flat, tracking broadly mixed Asian markets as Israel’s push into Gaza stirred fears of a wider conflict ahead of central bank meetings in the United States, Britain and Japan.
More than 30 Chinese-listed companies unveiled share buyback and purchase plans over the weekend while major mutual fund house E Fund Management said it would invest in its own product.
They’re joining a growing number of companies heeding to government calls to help revive a stock market that last week hit its lowest levels since 2019.
Shares of most companies that announced share buybacks rose. Hainan Mining jumped 6%, while Vatti Corp and Zhejiang Sanmei Chemical climbed more than 2% each.
China finance ministry on Monday issued a notice to guide insurance funds for long-term investment, to better utilise the stabilising effect of long-term funds to the market.
Sentiment was also aided by tighter rules against short-selling activities effective on Monday.
The tech-focused STAR 50 Index climbed 1.9%, while the CSI Info Tech Index jumped 3.4%. Tech giants listed in Hong Kong added 1.3%.
However, banks dropped 1.7% to 11-month lows, after four of China’s biggest lenders posted shrinking margins in the third quarter, compounding concerns over the sector’s health.
China Evergrande Group slumped nearly 10% as a Hong Kong court gave it a five week reprieve to come up with a deal for creditors or face liquidation.
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